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tv   Street Signs  CNBC  August 15, 2013 2:00pm-3:01pm EDT

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to 3.77. you can see the volatility index is also higher. gold and silver are running. it looks like gold, tyler, rallied before we had the big moves on the dollar, so we're trying to figure out exactly what's happening there. >> very few stock winners today. that will do it for this hour of "power lunch." "street signs" begins right now. not weathering the day very well at all. you have cisco and walmart getting slammed. they're rising to the highest levels in two years, and the vix at its highest in two months. gold overall like a safe harbor in the storm. we will be heading to cairo for an update on the intense violence in just a moment's
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time. in the meantime, hello, everybody, and welcome to "street signs." we begin with the monster move we are seeing in gold today. sharon, what exactly is going on? >> we're looking at gold prices that are up about $30, about 2% or so, and we're seeing a tremendous amount of momentum that appears to be in the gold market that happened just this afternoon. many traders are pointing to the violence in egypt, looking at the worst day of violence they have seen in that country in modern history and looking at the tensions there, and the impact that could have with the stock market there closed with some companies seizing operations there in wake of the violence. so that is something they're watching, and they're saying gold is the safe haven that a lot of investors want to be in right now. also looking at where the weakness is in this stock market, another reason for safe haven demand, they say. we've also seen some bargain hunting. when we look at some of those technical levels and we look at what we're seeing in terms of the gains and interests, this is when momentum traders start to
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power pour in. it's not only the gold market that has seen this interest. look what's happened to silver as well. silver is actually the best commodity we have today. it's over 500%. bull market territory up 20%, actually, since the june low. so we're seeing tremendous momentum and upside here in precious metals. thin trading in the summer, so that can increase the volatility. >> excellent point there, sharon. somebody will get a whole lot more on gold and also some investable advice on that issue in a moment's time. in the meantime, let's talk stocks. we're down on the dow, but we're also seeing painfully low volume, and to what degree is that exacerbating the moves? >> the volume was low in the early part of the day. it's picked up a little. i would say it's moderate right now, but the bottom line is we have more of a buyer's strike than the seller saying get me out at all costs. it's still a reduction. we're still seeing some selling going on, and this pattern, sell
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right into the open. that's been happening for almost two weeks right now. we're still moving sideways, by and large, essentially sitting at the lows for the day. we've been highlighting all day what the issues are for the stock market. number one is the ten-year at two-year highs. we moved up on the initial jobless claims number. they cannot figure out what the right interest rates should be. nobody quite knows. that's causing the confusion. then we were promised growth in the second half on the earnings front but yet macy's, walmart, cisco don't seem to be anticipating the kind of growth they thought we would have. what is risk reduction? put up sectors. i mean, when you've got cyclical groups like financial stocks that are down as much as consumer groups like health care, that's risk reduction. just right across the board, let's take some money off the table. i am a little encouraged, mandy, that homebuilder stocks dramatically beaten up, are up today. it is a little bit encouraging after this group is down 20%
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from their highs. back to you. >> we've got a long-term homebuilding bull who is actually going to be on in a moment's time and whether he thinks the bull has been put in. the two-year high we're seeing for bond yield, i want to get to rick santelli on that issue, and something bob said really piqued my interest, and that is people are trying to work out what is the right interest rate and whether or not rates are rising for the right reasons. what do you think? >> i think that that is under my camp of ui, unintended consequences. uc, i mean. the federal reserve has created an environment where it is impossible to really peg where interest rates would be if their presence wasn't in the marketplace. you know, let's say the argument was they should be at 4.5%. well, even at 275, then, it's a bargain. and if you consider that europe is potentially bottoming, all
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the reasons, the extreme reasons why rates are down above the impact of the federal reserve. all this has to come out to some extent. so it's a very difficult question. i think when you see moves like in the gold today which we're still trying to do the forensics for, one thing that jumps out at me, and that is there is a holiday in europe today. none of the european banks are closed. i think that should be a contributing factor. >> rick santelli, thank you, as always. i want to get back to what's happening with gold. as we mentioned, gold is currently up about 2%. it's currently here at 13.64, to back above that 13.50 mark. let's find out where it goes from here. frank holmes is a u.s. globe investor. is it a flight to safety? >> i don't think it's a flight to safety to the degree people are thinking. i think you're in that low season and this year was a
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spectacular, massive drop in the quarter. facts today show that physical demand is very strong, and a lot of the big redemptions took place with speculative financial gold players. they were bust in asia and the middle east and turkey, so i think you see gold trade continuously go through what i love to call the love trade, which starts every summer and runs through the chinese new year. >> yet this is kind of ironic, because the high we're seeing in gold came the day we found out some of the big hedge funders have been cutting their stakes in gold. do we follow the smart money, or do we get in gold at this level? >> well, we've always advocated that people have 5% in beautiful gold jewelry and another 5% in gold stocks, and you rebalance each year. so we stick to that tune of 10% gold weighting. >> where do you think it will go in terms of levels from here? what i'm trying to get at, for
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the retail investor, do they follow what these big hedgers are doing, or do they think this is the time for them to get in? >> i think most want the 10% waiting than those who take big, big bets. the big investors have a very concentrated big bets. it's very different than having a diversified portfolio. >> frank, thank you very much for joining us today. let's take a look at two bell ringers which are helping to push the dow down. you have walmart at 2.5%. we have cisco systems. we knew this was going to happen. the news came out after the bell yesterday. i said to the people in asia, watch what happens tomorrow, and look at that, 7.5 at the down side. i really want to know what's going on with retail in general because it seems to be the toxic sector right now with the exception of just a couple names, mandy. >> that's right. markets sure pay attention when the world's largest retailers in
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the u.s. and around the world are curbing their spending on big items. wall street doesn't see it abating any time soon. revenues fell short by about $2 billion. a discount retailer also slashing its full year guidance for both earnings and sales. that really concerns investors. company executives think it's the 2% sales tax hike that's the cause of this, also lack of inflation. cooler in the warmer weather and a larger than expected currency impact. of course, now we're trying to use a crystal ball and say, does that mean it's going to continue or have those consumers gotten used to those lower paychecks? >> we'll have to wait and see. courtney reagan, thank you very much. in terms of what's happening with cisco, it is cutting thousands of jobs despite coming up way nice jump in its profits growth. what's happening here? are they trying to guide against bad times to come? >> yeah, mandy. it looks like ceo john chambers
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is looking to lower the levels. demand has been tough for them to predict, soft in a lot of asia and emerging markets. two, cisco is laying off some workers while adding others in growth areas. and three, he thinks cisco is doing a decent job managing things that are actually under their control. look at this in a broader context of the year. not so bad, but cisco has suffered its first big fall of the year, mandy. >> thank you very much, john fas. how should you react to today's selloff? let's go to thomas lee, strategist at jp morgan. jack and tom, i would like to know point blank, is this just a summer swoon, or is this something more? >> i think it's just a summer swoon. i think if you strip away quantitative easing and just look at fundamental value, you're looking at an s&p that
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should be trading at right-hand 15.50 and 15.70 and not 16.60. now, we're not pulling the complete rug out from under quantitative easing but perhaps somewhere in between which suggests to me maybe a 5% pullback, somewhere in there, but no, this isn't the beginning of some spiral. >> tom, do you agree? >> i think it's -- you know, i think this is your normal sort of summer doldrums. a lot of professional investors are really making vacation plans, and so having risk on into the last part of august isn't what people want to do. i don't think this is the start of a major selloff. and i think if you look at the past four years, and even just the last 12 months, movements like this have really been opportunities for investors to add risks. and i think what you can lay your faith on is there is better growth coming out of europe.
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i think there is still a lot of pent-up demand in the u.s. and i think ultimately stocks are going to reflect that. >> so where in the sectors would you be adding that risk in? >> in terms of sectors, i still think it makes sense to look at a bet on global growth improving in the second half. that does lead to cyclical stocks, and i think technology to us remains the most attractive because of the high tax yields there. remember, tech is basically an american sector, so if you're trying to play to economic development growth and you buy tech, you end up buying american stocks. and then the other sort of thing i would focus on is high free cash yield. high free cash yield companies are trading at roughly 12% earnings right now, and you end up -- if you screen it, you end up way lot of tech stocks. >> what about you, jack? what are you doing? if you believe it's not the start of something more worrisome, maybe just the start
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of a summer swoon, what do you advise? >> sure. within the s&p 500, our favorite sectors are finance and health care. finance, the theme is pretty simple. all of that quantitative easing is ending up on bank balance sheets. they're not necessarily lending it out. the fed is trying to steepen the old curve and increase the spread between overnight paper and intermediate, say, 10 and 30-year paper. and that's going to create a better environment for lending. the better environment for lending should be better profits for the sag. as soon as we get that profit yield curve and the dust settles, i think it will be fair for them. we have also increased our exposure to international development stocks, although we have hedged the u.s. currency and other currencies back to the u.s. dollar. we think they're trading at a discount and they're about to enjoy some more growth. and, of course, emerging markets are trading now at a 35% discount to the s&p 500, and even after these -- the
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downdrafts here, they've got growth rates that are far in excess of the developed world, so eventually that will pay off. >> i think you're not alone in that thinking, actually, jack, because if you take a look at the performance of markets around the world, just in the month of august, we're starting to see a bit of a comeback in those emerging markets and certainly other areas like europe. but i would like to know from both of you, just briefly, what would be the red flag to both of you that what we're seeing is more than just a summer swoon? you first, tom. >> to me, i think what we should probably be worried about, if the underlying participation in the market worsens, meaning if the market starts to narrow. so i think if small caps go through a bigger selloff and they weaken and the market doesn't react to good news, we could be worried about it to a larger correction, but for now we're not seeing evidence of that. >> what's your red flag, jack? >> i would say the violence in the middle east. if this all of a sudden really
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starts to spin and we have more widespread chaos in that part of the world, that would suggest to us that maybe take a second look here, take some risk off the table and really kind of sit tight. >> okay, jack and tom, thank you very much for your thoughts on the market. let's find out more what's happening in the middle east because investors are keeping a very close eye on the situation in cairo. earlier on today, egypt's government says it is allowing authorities on the ground permission to use deadly force to protect police and key institutions from attack. cnbc's gamella dean is on the situation. how is it now? >> reporter: a curfew has gone into effect. you can see behind me traffic is dying down fairly rapidly. clashes are still under way across the country. in northern sinai, an attack on a military checkpoint has killed at least seven soldiers and injured many more. those are the latest stats we
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have. also, the muslim brotherhood making it clear that they will continue to fight, and that quote, they will rise again. million man march is planned for friday. the death toll we have so far from the ministry of health indicates that at least 525 people have died in the last 36 hours or so with some 3,500 injured. and it could be much higher than that. the muslim brotherhood keeps saying that it is more than 1,000 people who have died. you mentioned the use of deadly force, or at least authorization from the medicine of the interior, to at least show you the additional steps taken to bring the country back under control. a few important points? the suez canal and we do not have a response from the egyptian government on the latest comments from president barack obama and the cancellation of biannual military exercises.
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>> this is the point we're watching for world markets, which is currently 107 right now. thank you very much for your reporting. on deck, building confusion in the housing market. one long-time homebuilder bull is getting semi-bearish. while a new survey says everything is fine. so we want to know, which is it? we're also keeping an eye on this market. right now the biggest loser on the big board is hp. it is currently moving to the down side as much as one of the other stocks on the dow. stick around, "street signs" will be back in a minute. make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity.
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♪ mattress discounters! we're sig leeing a lot of rn the markets. we have the worst drop in the s&p and the dow in two months now. it looks bad out there, right? but the dow is only 3.5% off its record high, the s&p is only 2.8% off its record high. as for gold, it is actually one of the very bright spots we're seeing today. it is surging along way drop in the u.s. dollar. you've got gold up by about 2.5%, 13.56. above that market was seen as kind of a key technical level. you've got silver, copper and platinum. silver is really on the run. as for what's happening in the housing market, it's really a tale of two housing markets.
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you have a homebuilder survey which was actually better than expected, but then you have this. the philly house sector is down 20% from its highs. we're getting to nbc's bob whittenhall in just a moment. what's the real story here? >> mandy, it certainly does. sentiment among the homebuilders continues to rise and seems to be among sentiment with homebuilders in stocks. stocks up for the day but down officially into a bear market. over 20% from their highs in may. big names like d.r. horton now at one-year lows. you can blame that on rising interest rates, but rates do not appear to be affecting homebuilder sentiment which was up 3 points on the ntsb. of the three components, current
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sales were up three points, expectations up a point. only buyer traffic is lagging unchanged and in the negative territory. confidence is getting a boost from the very limited supply of homes for sale. >> there is generally a shortage of product in this vicinity around here, so people want to move in but they don't have anything to buy, and the existing product is not there so we're trying to buy new for them. it's getting very good. all of a sudden houses are moving up in price and you're getting enough interest to buy. >> now, one analyst told me today that builder confidence really revolves around the lots they have and the permits and the housing starts. he says they can build all they want, but if they build it, they can't always be sure that those buyers will come. mandy? >> thank you very much for that, diana. is it a tale of two housing markets and which one do you follow? just as we're talking about the homebuilder sentiment survey, outcomes capital markets downgrading policy groups.
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they actual are talking about various headwinds that face the group. let's bring in bob whittenhall. bob, great to have you with us today. i'm really interested in whether or not these homebuilders are going to find a bottom. they are now at 20% over their highs. is this the worst or is more to come? >> mandy, what's really our primary concern is dislocation in the job market is impeding household formation. so the rate of change on the up side is starting to moderate. with that we're seeing decelerating order growth which trans forms into slower earnings performance. we're also concerned about valuations. impact of higher interest rates has two impacts and makes mortgages more intensive for the incremental buyer and it's also going to hurt valuable investments in they're using. so we've gone from a bolder stance to thinking that the
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headwinds will be even stronger. we really like pulte. in light of the circumstances, it's going to be very tough to get that stock and other homebuilders we like to work in this environment during the next five months. in contrast, we think there has been a strong surge in consumer confidence and home valuations which is leading to the release of pent-up demand. so look at stocks that are leveraged to residential repair, fortune brands to fare a lot better than the homeowners. >> you might not number the mood and might not have the money, might not have the inclination right now to actually buy a new home, you might just renovate the old one, right? so, therefore, you'll see some kind of favorable flow onto some of the building products. maybe even the renovation plays, home depot lowe's, or is that too much of a stretch? >> we have a bullish few on the r and r component to the
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economy. you start to reinvest in your house when you think the value is coming up. the other factors -- and i want to be real clear on this because it's somewhat of a nuance call. we agree on the tale of two cities. our concern is about the low end of the market. our concern about the high end of the market doesn't exist because we see people paying cash, we see home values escalating. if you're thinking about putting fresh money to work in the current home environment, we have to be cautious because that's going to impact homebuilders who are concerned about valuations and earnings, saying where else do we have to be if we're going to get some movement. >> you mentioned here during the conversation a lot of things like -- you haven't really mentioned rising rates or affordability. >> putting it on the table. >> what is the headwind there? >> two headwinds.
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rising rates cause the incremental cost of buying a house more expensive. that's going to take some buyers out of the market if rates start spiking up dramatically. which is a huge concern. >> which one of those stocks you just mentioned is the most vulnerable to that. >> probably the companies that indicater for. investors understand this, but the question is, what's going to re-engage the group and cause upper momentum in the stocks. . we think that will weigh on the group into year end unless the situation changes. >> into year end. armani also down about 50% on the day. let's get a look at what's happening out there with the equity markets. a con flufluence of factors.
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what do you think are the most important factors and will it continue? >> what we're seeing is very low volume, so whenever we have a move in either direction -- just like you don't have to. we have two major data points or an, and he have all three major indices down about 1.5% right now. it doesn't point to something specter specific, it's just let's get out of this market and see how it looks tomorrow. that kind of attitude usually doesn't last very long. you know, last week was also very low volume and i know it hasn't been great, will probably be. does that mean we're trending lower? >> no, i don't think so. i don't think we're going to have a cisco or walmart or macy's to give us bad news.
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i think the consumer purchases really took a break. i think at that point in time the month of july was really bad for the consumer. there wasn't a discernible trend, or is this a point in time where you'll be back today. when you get walmart and macy's on back to back days. . looking for that to pick up in the second half, and that half is cloudy. it's just bad news and a marketplace that doesn't have a lot of players. well, a superbullish report for the auto industry, though. one of the strongest in ten years. yeah, we're finding the bright spots for you. also, an icon taking a shot at bill ackman.
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it's a real double whammy out there. we are at the lowest lows of the day, but the dow is 1.3% of the down side. i can say earlier today all three components of the dow were down. now we have ge and also aa. they are moving to the up side ever so slightly, but we will take the green wrer we cherever get it on a day like today. on auto stocks, you have warren buffett upping his stake in gm by about 60%. you have ford laying out more ambitious plans, a higher dividend and a 25% increase in their capital spending. so they're feeling a little bit more bullish in terms of what's going on in the auto industry worldwide. as we can see, the auto stocks
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today are moving down with the rest of the market. that's despite, phil lebeau, one of the most bullish reports we've heard in a while. what's going on? >> mandy, this report comes from the global auto rally where they've talked with automakers and parts suppliers. you're looking at a surge in the auto industry. when you take a look at what's going on around the world, europe sales are now expected to be higher in 2014. that's the call from jp morgan. the world's top three regions, europe, the u.s. and china, are all rising, and the suppliers are in the sweet spot. that's why when you take a look at the parts and equipment, some of the groups are up greater than that. european auto sales are expected to increase next year. not a huge amount, but that is going to be welcome considering the fact that auto sales have been at a 17-year low.
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the u.k. and russia, those are the two markets within europe that are leading the sales rebound. and this is particularly good news for general motors. this stock is up 70% in the last year. gm has lost money in europe for the last 13 years. so mandy, they're not saying they're going to make a profit next year, but they'll get closer to that. s&p capital raising it to a bye rating. we can report to you that ford is going to be restating the mileage estimate for the cmax hybrid. it was 47. we understand it will drop down to 43, the company making the announcement a little later today. remember, back in december, they said it gets 37 miles to the gallon, but this is important to a number of vehicles when it comes to how the automakers calculate miles per gallon. a lot of people said they should be lower than what's on the
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sticker. >> thanks very much, phil lebeau, and thanks for the bullish news in the sector on a day like today. up next, the top three things we learned from mr. greenburg. i learned a lot more than three, by the way. plus, a fundamentalist goes through his top three picks. just a quick check on what those markets are up to. the dow is off 12.3 points right now. it is the biggest drop for the dow in two months. don't go away.
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>> you've got gold mooving up b 2%. let's bring in commentator on the market. dave, we've already had a couple guests on the show who think it's just a summer swoon, nothing more, where another guest said a lot of this is maybe just because we have a lot of low volume. what say you about what's going on? >> mandy, i love to disagree with the guests that you have on, but i've got to greeg wiagr
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both of those guys. it's a holiday in europe, so when we sat in our seats, they were taking their cues for markets 70% late in their volumes. we're posting our august late right now, and those are obviously terrible volumes as well. so we've been taking our cues from what's going on in the credit market. the 10% yield popping up 2.8%, we saw them under pressure early, we saw the homebuilders under pressure early and these sectors. we're starting to see some rotation in areas like apple starting to take some leadership back into tech space. we're also looking at homebuilders having a sharp rally off their lows. as you just mentioned, the metals are acting fantastic for a variety of reasons. >> the low volume issue, right, it's not just an issue for the day, it's been there for the summer. rising rates has definitely been
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a concern for the markets for a while now. what seems to be new that's thrown into the mix here is a number of misses from big bell weathers, companies you don't expect to miss, the names like cisco and walmart and macy's, they're really spooking the market right now. are you concerned about what's happening with earnings, what's happening with corporate america may be also whether or not we're going to get the third quarter growth we're expecting. >> i think a lot of the con ttry ans. we're really focused on the back to school season. if the back to school season starts shaping up a lot stronger in the next week or two, that will stroke the bear sentiment going on in the retail segment. walmart is a big concern. we've seen the walmart print take a beating in the last few sessions but seeing it's
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starting to rotate from cisco into the mi hohigh flying names app apple. mandy, you know, we heard that 32% of small businesses, the main thing they feel is the biggest stress is u.s. government policy and a lot of regulations. there's still confusion out there. and only 16% of them really thought it was poor sales were their biggest stress. if we can get d.c. out of the way which is our big black swan event for the market, mandy, we're going to keep moving higher. >> and cisco offers business trends sooner than other countries. david lutz, thank you for joining us. >> thank you, mandy, appreciate you having me. a bigger hit on the closing bell. what are you watching? >> that's for sure. we're going to keep an eye on the selloff, mandy, and see what happens as we head toward the close. is this a buying opportunity? dennis gartman has been very bullish recently, but you may be
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as you can see, it is a sea of red out there on the s&p heat map. it is currently down by 1.3%. we did pick out from that slim little green line on the top of the screen, though, a couple retailers doing pretty well. one is kohl's and the other is jc penney. in fact, it's up more than 4%. that is after george reviewed a big stake in the company, j.c. penney being up to 13.70. he added another 2 million shares to it. also the fork nork ponew york p reporting j.c. penney reporting higher earnings. let's go to our five picks from the lone star state. craig, great to have you with us, and i did actually notice out of your three top picks, two
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of them are from dallas. a little bit of dallas bias going on there? >> yeah. we are coming across a lot of good companies in dallas. in fact, this morning i spent the day at encore wire and i heard a fantastic story there. there are some really good dallas companies that have a real bright future. >> let's talk about a couple of them. we have trinity industries. >> trinity, i mentioned this one before here. the company is doing fantastic. of course, they make rail car. they're really benefiting where their competitors aren't. this oil by rail is a big deal, and you've seen greenbrir and some of their competitors come out and say that part of their business is slowing down. but trinity, we've followed these guys for years and years, and they're telling us they have better visibility now than they ever have. we see $4.50 of earnings here in this next year or two, possibly in excess of five, and at $39, we think the stock looks very,
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very good, and they've done some very smart things from getting in the leasing business, which is going to make the business a lot less cyclical, so we love trinity. one of our largest holders. >> we've also got matador resources, which is a share play. >> matador is a great little company run by joe ferran. he's got a great little track record. he's built a fantastic team there at matador. they're drilling in the eagleford and the delaware basin. and these guys just know how to make money. we kind of joke around our office, he's kind of the anti-aubrey mcclinton. runs a very tight ship, does not waste money. just a great, great oil executive. >> a tight ship is a good thing. in the meantime, the third one you've got here is shoe carnival. i checked out their website and thought, oh, this is my kind of website. i was also wondering how does it stand out for you in terms of its competition? you've got competition like
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zappos owned by amazon, you've also got dfw as well. what's different about this company? >> they do just more or less go to the family shoe channel, and i believe they're going to be able to get into areas -- they're in tennis shoes, they're also in dress shoes, so it's not dependent on fashion. and they're going to take their store base from probably 350, 360 stores they have now to probably in excess of 700 stores over the next several years. so this is a real good growth opportunity, we feel like, and that's one thing we've noticed through a lot of the recession times is that people continue to buy shoes. so it's a niche of the retail industry we would be very comfortable in. >> i certainly feel that shoes are a complete necessity in life. thank you very much for joining us, craig hodges. >> my pleasure, mandy. coming up next, whale watching with warren buffett and the very, very best of herb.
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>> let's take another look at what's happening with the markets. we only had two dow components moving higher.
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the dow is off by 210 points. you got, of course, interest rates moving up. is, of course, making people worry that interest rates will kill the recovery in the commitment we also got some negative guidance from a number of big names spooking the market. all a perfect storm right now. well, warren buffet hathaway berk shiers have been making some moves. you join us with more. bring us the highlights. >> it is a 13 season. many names are telling us where they see news and where they do not. warren buffet says it slashed its exposure in kraft foods and mondelez. on the other hand, likes the move of general motor, increased its stake there by 60% to 40 million shares. how about that company in cooup
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coopertino and j.c. penney, of course, always making headlines. tiger global had enough. resolved its stake in the shareholder. storos busy. icahn hadded 2, it has now 17 million shares. by the way, icahn now has 140 million shares of dell ahead of the vote there. also, some interesting moves we saw in the yellow metal, omeg gas, third point, paulsen sold off their trust. paulsen still has some. this is an interesting move that let investors use that as a currency. the financials see bulls rush in. berkshire adding to u.s. corps, wells fargo blue ridge raised its rate in citigroup, hedgies have been looking for move him in the auto sector sales, blue
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ridge by avis and hertz, paulsen by cooper tire as his mna play, finally thempur making big moves. >> thank you. coming up next, herb's words of wisdom, plus a very special surprise guest. as for the nashlts, as you can see, 206 points up for the downside for the dow t. nasdaq is off by 56 points. the s&p 500 down 22. don't go away. strong and the el. for the authentic. for at home and on the go. for pessimists and optimists. for those who love you a little and those who love you a lot. for ultimate flavor and great refreshment with or without calories. for carefree enjoyment. for those who have a lot to say and those who have nothing to add. for those who want to choose and choose. for every generation. for us. for everyone. forever. bob will retire when he's 153,
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>> okay let's get you up to date on the market. the dow is off 206 points. before you hit the panic button, i want to put it in perspective, we are only 3.5% off for the dow and 2.8% for the high of the s&p as well. i got, of course, a long-time market watch, a great friend as well, herb green berk, markets are your area, you always try to navigate risks for everybody and stop people from losing more money. what would you say people about today and what we have seen over the past week or so? >> well, i think we knew something could happen, because when things go up, you know there is a level of unrest. we know the issues with interest rates. look, i have been around to know today is but a day. i can't tell you if it's going to continue or turn around. >> what, you don't own a crystal ball? >> mine is broken. >> i believe they're at walmart for $9.99.
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today is actually a special day. i have been told, i am not allowed to start crying. i am not allowed to cause a scene. are you not leaving us, you are going on to greener passtures. >> warmer. >> you will be in different passtures. tell us what your are. >> i will be joining i am re-joining. i have been there six years. i will most importantly also be moving back to san diego, which is the reason all of this is going on. i will continue with cnbc as a contributor. i will be out here once a month, doing shows for san diego. >> which show, specifically, herb? >> it's called the street sign, 11:00 pacific time, 2:00 east coast time. >> in honor of your early departure to warmer climbs, we actually had a special dpeft who is phoning in right now. he'd like to say something to you. brian. >> you know, guy, how are you? herb, fiwas there, i would start
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weeping and sobbing like a blubing elephant. i know you are not bleeping, you are going to san diego, my old hometown, i tell you what, i will miss you a lot. i learned a lot about the markets from you how to view things with a sideways glance, how to dig in deeper. i was a fan of yours before i joined cnbc. i know are you not going away, i will miss your presence in the office every day. i don't know who i will challenge to bet some razz everybody. >> brian, i appreciate. that by the way the gold miners etf is rising today. i point that out to you. >> why can't you go out on a high note? you know what i mean? why do you have to go over our best? here's the cool thing, though, if you win the bet, we have dinner in san diego, you got to fly me out. >> okay. i'll think about that. >> the reverse is true as well, brian. >> look, you guys are just the best. we've had a great time. >> very quickly, give us a pearl
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of wisdom. >> i'll quickly tell you, it's all about the risk. i came here, talked about the chinese ipos, things to be true, things you can't analyze, that's the chinese ipos. we talk about for-profit schools, i say don't count on regulatory authorities if that's the reason for your investment and for profit investment was along those lines, actually, regulatory oversight was an important thing. then again, we get back to herbal life and a marketing issue. >> which is closed by the way. the question is still out there. >> you have this big side show going on with the henl funds. totally undermines what the research we have shown is that there are reasons to continue to be concerned about the risks that this grey area may one day be delineated by the regulatory authority. >> right. one more. >> oh, one more? >> yeah. one very special one. >> guy, i got to go. i got broth cooking on the grill in wisconsin. here's my fellow wisdom, listen
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to herb greenberg. >> thank you for listening, thanks for tuneing in, brian. i will give you a hug. i am not allowed to give you a cry, i am allowed to give you a hug. >> by the way, people should check out that twitter you did with me earlier. >> thank you, everybody, keep on watching the market. we track them on the downside. "closing bell" is next. >> hi, everybody, it is the final hour of the most difficult trading day on wall street today. welcome to "the closing bell," the final stretch. bill, we bought the the dow down 210 points right now. >> it was down 236 or 238, if memory serves, maria. the sell-off started pretty orderly, a few weeks ago, we were down a drift, then a leak, now some are wonder figure this could become something bigger. interest rates spiked earlier in the day. you had disappointing earnings from cisco and walmart. have you gold spikeing.


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